Penrith Property Market Update 2nd Half of 2022
In Q3 2022, Penrith recorded a median house price of $873,500. This is an annual (Q3 2021 – Q3 2022) 2.8% median house price growth. That said, on a quarter-to-quarter basis (Q2 2022 – Q3 2022), median house price softened by -4.2%. This is a reflection of interest rate hikes translating into the market. Total house sales decreased annually and quarterly, with Q3 2022 recording the lowest number (513 sales). The unit market recorded a 6.2% median price growth annually and -1.7% quarterly, which suggest cash rate movements are impacting all property types. New opportunities exist buyers in both markets.
Average vendor discounts between Q3 2021 and Q3 2022 have shifted for both property types, swinging to a discount of -5.1% for houses and a higher discount of - 4.9% for units. Market conditions in Penrith have now shifted to favour buyers, as vendors are willing to offer below the initial listing price.
House rental yields in Penrith was recorded at 3.2% in September 2022, higher than Penrith LGA (3.0%) and Sydney Metro (2.7%). In the 12 months to Q3 2022, median house rental price increased by 20.2% to reach $505 per week, despite a 46.7% increase (to110) in the number of houses rented. Average days on the market remain low at 21 days. Overall, this suggests a resilient rental market in Penrith, which has a more affordable investment entry price compared to Sydney Metro.
4+ bedroom houses have provided investors with +14.2% rental growth annually, achieving a median rent of $628 per week.
Penrith¥ recorded a vacancy rate of 0.9% in September 2022, which is below Sydney Metro’s 1.3% average. Vacancy rates in Penrith¥ have slightly fluctuated in the past 12 months, however, have always maintained below the 1.0% rate-band and below the Real Estate Institute of Australia’s healthy benchmark of 3.0%. These key indicators create a conducive and sustainable environment for investors, particularly with a median property price downturn in the past quarter.
